Oneida Nation to take tax dispute case to state courts

VERONA, N.Y. — A federal appeals court panel says a tax dispute between the Oneida Indian Nation and two upstate New York counties is no longer a federal matter, but could be fought in state courts.

The Second Circuit Court of Appeals ruling comes after more than six years of litigation that reached as high as the U.S. Supreme Court. At issue is property the Oneidas began acquiring during the 1990s in an area what was once their reservation. Madison and Oneida counties claimed the right to continue collecting property taxes and moved to foreclose when the tribe refused to pay.

The judges told a lower court Thursday to step aside and lift any injunctions in the case, but not to bar any action in state court. The Oneidas say they'll file court papers promptly at the state level.